Vote: Fed Stirs Again? Will SPX Stand on 4200 This Week or Not?
On tuesday trading,Fed Chair Powell says inflation is starting to ease, but interest rates still likely to rise.
“We expect 2023 to be a year of significant declines in inflation, My guess is it will take certainly into not just this year but next year” to get to 2%.
Seems the market downplayed the need for Federal Reserve to hike rate and even expected a rate cut by the end of this year in response to possible recession, turned a deaf ear to what J. Powell was delivering.
For past times, we see that the market reacted to Powell's speech as a blow:
Powell: Inflation is only temporary
Wall Street: Received
Powell: Inflation is really only temporary
Wall Street: Received received!
Powell: Inflation doesn't look temporary, we have more rate hikes to come
Wall Street: ..., got it
Powell: Inflation is very strong, we will continue to raise interest rates by 5.5%
Wall Street: Got it
Powell: Inflation is really strong, we will continue to raise interest rates, and we will not cut interest rates this year
Wall Street: Got it, what else?
POWELL: We're going to...
Wall Street: roll
Thuesday $S&P 500(.SPX)$ close at 4164, the next target may test 4200 above.
Will this week successfully breakthrough? Below are some comments from Twitter:
Soure from RBswingtrader on Twitter:
Nice close at the end of the day confirmed 4100 as a good support level. Next, we got 4200 as a resistance point and 4230 and 4260. If i see a dip Wednesday to 4140, i may swing more calls.
Soure from Nostradamus on Twitter:
$SPX 4200 resistance test is coming, and soon we get the bear crushing box. Above that and you could see short sellers in liquidation mode. Bears and shorts forgot to look at forward-looking chart formations after a year of what we had in 2022.
In short: 4150/4125 will be support, 4200/4225 will be resistance.
If $S&P 500(.SPX)$ continues to hold 4132 it should test 4200-4223 by Thursday. $S&P 500(.SPX)$ 4200 can work on Friday
Optiontrader Sim on Twitter:
$S&P 500(.SPX)$ is at my resistance of 4163 points, we need to hold at or above this area to be bullish. Next resistance is at 4179 points. If we break past that level, look for a rejection at 4200 then back down to the 4140 area.
After watch the above 3 charts, please join to vote:
Can the S&P 500 manage to break above 4,200?
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$S&P 500 index(.SPX.US)$ retreated 1.1%, a day after the benchmark index jumped 1.3% in a volatile session. $Dow Jones Industrial Average(.DJI.US)$ fell 0.6% while the $Nasdaq Composite Index(.IXIC.US)$ lost 1.7%. On Tuesday, all three indexes closed higher.
Should be thats why banks still offering 3.9%